Amex cuts the value of its rewards cards but still beats the big banks in value
American Express, long the favourite for spenders chasing big rewards points balances, has today announced decreases across the earn rates of many cards in its rewards card range. But if you’re ready to trade in your Amex card, don’t be too hasty - amongst a trend of slipping rewards programs, it may still be one of the best value cards around.
Mozo data shows that rewards value has been steadily declining for the last two years, since the RBA made changes to interchange fees charged on credit cards. And Amex is just the latest in a long string of card providers making changes to rewards.
“There has been a lot of change in the rewards credit card market this year and with Amex now signalling an overhaul of its program, many people will be wondering how best to extract value from their card,” says Mozo Director Kirsty Lamont.
“While Amex card holders will see a decline in the value of the points they can earn from April next year, the good news our analysis shows their cards will still outperform the big four banks when it comes to delivering gift cards and flights.”
Mozo data shows that the average net value of an American Express card will fall 27% from its 2016 value when the changes come into effect next April - significantly less than the 89% average fall over the past two years suffered by the big four banks.
Average rewards net value across all rewards cards
You might be wondering what exactly that means when it comes to earning and redeeming rewards points on your American Express plastic. The answer is that you’ll need to spend more to get the same rewards - but Amex customers will still spend considerably less than big bank customers.
Even taking into account the changes to American Express’ points value and earn rates, Amex cardholders are still looking at a spend of $5,516 less than a big bank customer when it comes to a gift card, or $3,639 less for a free flight, on average.
How do Amex spends stack up against the big 4 banks?
“Although these are quite significant changes, it’s clear Amex still offers one of the best value rewards cards when compared to the big four banks. So if you love rewards, it’s worth doing your research to understand how much you’ll now have to spend on your card to earn a gift card or a flight,” Lamont said.
Changes to American Express rewards cards - effective 15 April 2019
So what exactly has changed? Here’s the nitty gritty of it.
The Amex Explorer Card, Platinum Edge Card and Essential Credit Card, which earn points in American Express’s own rewards program, emerged unscathed from the changes, but other airline cards in the American Express lineup dropped a quarter of a point per $1 spent.
How many points per $1 does an Amex card earn now?
The big change for the value of American Express rewards cards was not actually the earn rate, but the redemption value of the points earnt. For example, snagging a $100 gift card will now require 20,000 points to be redeemed, up from the previous 13,500.
For those converting to airline points, 1 point earnt on an American Express card can now be redeemed for 0.5 Velocity points, down from 1 Velocity point on the Platinum Edge Card and 0.75 Velocity points on the Essential and Explorer cards.
How much do you need to spend on American Express for a $100 gift card or domestic flight after April 15?
“These changes might come as a shock to the system, but when you look at the big picture, American Express cards are on the whole still really great value,” said Mozo Director Kirsty Lamont.
Key to getting top value from your rewards credit card is finding the piece of plastic that fits your spending style. You can check out the Mozo Rewards Revealer to find your match, or take a look at some rewards card options below.
*Rewards net value is derived by calculating the number of points earned based on an annual spend of $20,000, then calculating how many Syd-Mel one-way flights can be redeemed using the points earned. An assumed flight cost was used and the annual fee deducted to arrive at a rewards net value.
Hot rewards cards 2018 - last updated 30 October 2024
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Citi Rewards - Rewards Points Offer
Citi Rewards Program
$199 $99 in the first year
100,000
1 point up to $10,000/month
100,000 bonus Citi reward Points when you spend $5,000 on eligible purchases within 3 months from approval. That’s $400 when you Pay with Points! Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.
CompareCompareRewards - Rewards Points Offer
100,000 bonus Citi reward Points when you spend $5,000 on eligible purchases within 3 months from approval. That’s $400 when you Pay with Points! Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.
- Rewards program
- Citi Rewards Program
- Annual fee
- $199 $99 in the first year
- Bonus points
- 100,000
- Earn rate per $1
- 1 point up to $10,000/month
- Intro rate
- -
- Ongoing Purchase rate
- 21.49% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- 22.24% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.40%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Mastercard, up to $10,000 per month
- Reward point expiry
- Never
- Bonus points
- 100,000
- Sydney to Melbourne
- 19500.0
- Sydney to London
- 299000.0
- $100 Gift card
- 20900.0
- Card Benefits
- Travel Insurance,
Extended Warranty,
Purchase Protection,
Mobile phone insurance,
Rental Vehicle Excess Insurance
- Rewards Bonus Points
- Points uncapped for eligible international purchases.
Read reviews and learn more about rewards credit cards
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Apply By 14 Jan 2025
American Express Qantas Ultimate Card
Qantas Frequent Flyer
$450
50,000
1.25 points up to 100,000 points/year, then
1 point uncappedReceive 50,000 bonus Qantas Points when you apply online by 14 January 2025, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months of your approval date. T&Cs apply. Available for new American Express Card Members only.
CompareCompareQantas Ultimate Card
Receive 50,000 bonus Qantas Points when you apply online by 14 January 2025, are approved, and spend $3,000 on eligible purchases on your new Qantas American Express Ultimate Card within the first 3 months of your approval date. T&Cs apply. Available for new American Express Card Members only.
- Rewards program
- Qantas Frequent Flyer
- Annual fee
- $450
- Bonus points
- 50,000
- Earn rate per $1
- 1.25 points up to 100,000 points/year, then
1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 44
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1.25 points per dollar on Amex, up to 100000 points per year, then
1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 50,000
- Sydney to Melbourne
- 8000.0
- Sydney to London
- 110400.0
- $100 Gift card
- 20010.0
- Card Benefits
- Account alerts by SMS,
Card Purchase Cover ,
Travel Inconvenience Cover
- Rewards Bonus Points
- 1.25 points per dollar on everyday purchases. Earn 0.5 Qantas Points per $1 spent at government bodies, earn 2.25 Qantas Points per $1 spend on selected Qantas products and services.Exclusions apply. After a total of 100,000 Qantas Points is earned in a calendar year, the everyday earn rate will change from 1.25 to 1 Qantas Points per $1 spent.*
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Kogan Money Black Card
Kogan Rewards Points
$0
No current offer
1 point uncapped
Get 0% p.a. on purchases and balance transfers for 9 months with a 1% balance transfer fee. Reverts to cash advance rate. $0 annual fee to pay. Earn 2 rewards points per dollar on your eligible purchases at Kogan.com & 1 rewards point per dollar on your everyday purchases, almost anywhere (T&Cs apply). FREE Kogan First membership valued at $129/year. Add up to 4 additional cardholders at no cost.
CompareCompareBlack Card
Get 0% p.a. on purchases and balance transfers for 9 months with a 1% balance transfer fee. Reverts to cash advance rate. $0 annual fee to pay. Earn 2 rewards points per dollar on your eligible purchases at Kogan.com & 1 rewards point per dollar on your everyday purchases, almost anywhere (T&Cs apply). FREE Kogan First membership valued at $129/year. Add up to 4 additional cardholders at no cost.
- Rewards program
- Kogan Rewards Points
- Annual fee
- $0
- Bonus points
- No current offer
- Earn rate per $1
- 1 point uncapped
- Intro rate
- 0% p.a. for 9 months
- Ongoing Purchase rate
- 21.99% p.a.
- Balance transfer rate
- 0% p.a. for 9 months and then 22.74% p.a. (1.00% balance transfer fee)
- Cash advance
- 22.74% p.a.
- Interest free days on purchases
- 55
- Foreign exchange
- 3.40%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Visa, uncapped
- Reward point expiry
- Never
- Bonus points
- No current offer
- Sydney to Melbourne
- N/A
- Sydney to London
- N/A
- $100 Gift card
- 10000.0
- Card Benefits
- -
- Rewards Bonus Points
- Earn up to 2 points per $1 of eligible spend on Kogan exclusive brand purchases.
Read reviews and learn more about rewards credit cards
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Citi Rewards - Balance Transfer and Purchases offer
Citi Rewards Program
$199
No current offer
1 point up to $10,000/month
Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. Balance transfer fee applies. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.
CompareCompareRewards - Balance Transfer and Purchases offer
Enjoy 0% p.a. for 15 months on purchases and balance transfers. Balance transfer reverts to cash advance rate. Earn up to 1 Citi reward Point per $1 on eligible transactions. Access up to 3 months complimentary International Travel Insurance and up to 14 days Domestic Travel Insurance with a Citi Rewards Credit Card when meeting eligibility criteria. Apply for a credit limit from $2,000 up to $100,000. Balance transfer fee applies. This product is provided by National Australia Bank Limited, using certain trademarks temporarily under licence from Citigroup Inc.
- Rewards program
- Citi Rewards Program
- Annual fee
- $199
- Bonus points
- No current offer
- Earn rate per $1
- 1 point up to $10,000/month
- Intro rate
- 0% p.a. for 15 months
- Ongoing Purchase rate
- 21.49% p.a.
- Balance transfer rate
- 0% p.a. for 15 months and then 22.24% p.a. (2.00% balance transfer fee)
- Cash advance
- 22.24% p.a.
- Interest free days on purchases
- 44
- Foreign exchange
- 3.40%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Mastercard, up to $10,000 per month
- Reward point expiry
- Never
- Bonus points
- No current offer
- Sydney to Melbourne
- 19500.0
- Sydney to London
- 299000.0
- $100 Gift card
- 20900.0
- Card Benefits
- Travel Insurance,
Extended Warranty,
Purchase Protection,
Mobile phone insurance,
Rental Vehicle Excess Insurance
- Rewards Bonus Points
- Points uncapped for eligible international purchases.
Read reviews and learn more about rewards credit cards
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Apply By 3 Dec 2024
American Express Essential® Rewards Credit Card
Membership Rewards
$108
60,000
1 point uncapped
Receive 60,000 Membership Rewards® Bonus Points* when you apply online through the link on this page by 3 December 2024, are approved and spend $3,000 on eligible purchases on your new American Express Essential Rewards® Credit Card within the first 3 months. T&Cs apply. New American Express Card Members only.
CompareCompareEssential® Rewards Credit Card
Receive 60,000 Membership Rewards® Bonus Points* when you apply online through the link on this page by 3 December 2024, are approved and spend $3,000 on eligible purchases on your new American Express Essential Rewards® Credit Card within the first 3 months. T&Cs apply. New American Express Card Members only.
- Rewards program
- Membership Rewards
- Annual fee
- $108
- Bonus points
- 60,000
- Earn rate per $1
- 1 point uncapped
- Intro rate
- -
- Ongoing Purchase rate
- 23.99% p.a.
- Balance transfer rate
- No current offer
- Cash advance
- -
- Interest free days on purchases
- 55
- Foreign exchange
- 3.00%
- Late payment
- $30.00
- Points earning
- 1 point per dollar on Amex, uncapped
- Reward point expiry
- Never
- Bonus points
- 60,000
- Sydney to Melbourne
- 15600.0
- Sydney to London
- 239200.0
- $100 Gift card
- 20000.0
- Card Benefits
- Extended Warranty,
Account alerts by SMS
- Rewards Bonus Points
- Earn up to 5 points per $1 spent on eligible eat and drinks purchases, up to 3 points per $1 spent on selected streaming subscriptions, up to 2 points per $1 spent at selected major retailers.
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